A well-run retirement plan improves employee wellbeing, promotes inclusivity in the workplace and supports long-term workforce management.
Retirement plans and your employee value proposition
MANJIT BASI: For most employees, company sponsored retirement plans form a large component of post-retirement wealth. They also constitute a large component of employers benefits spend. It's therefore important that employees appreciate, value, and understand their retirement plans, and that employers see a return on their investment.
A well-communicated retirement plan can aid attraction and retention of talent. And in fact, our Global Benefits Attitude survey, which looks at employees views on benefits, indicates that globally retirement plans are the most important benefit that employees want their employers to focus on. Companies also need to consider their objectives of providing these plans.
So a well-run plan can improve employee wellbeing, promotes inclusivity in the workplace, and it supports long-term workforce management.
In the current economic environment, financial resilience is more important than ever. We are seeing many employers offering choices and flexibility, so they'll offer opportunities for employees to set their contribution rates or to determine their personal investment strategy. But we also see that too much choice can be overwhelming and even have the effect of lowering engagement. And some of the retirement plans with the greatest employee choice, have the highest rates of members choosing the default option.
Let me finish by saying that managing a global retirement portfolio is a challenging, financial, and people issue. But doing it successfully is a great opportunity and also a great responsibility.